This video describes in detail what was happening in the Palladium Era.
As said in the video, at one point they started to organize competitions in the Palladium. One of the famous dance couples that were regulars at these contests were Augie and Margo who were also a big inspiration to Eddie Torres.
For the dancers of the Palladium Era dancing in the Palladium is often described as out-of-body experience. They would say that the music was a part of them, and they were a part of that music.
Keep in mind that then it was always danced with live bands. Because of that the dancers and musicians had a special connection between them, and they complimented each other.
As I also wrote here, that place was special because that was maybe the only place were the prejudice didn’t exist at that time.